Indian equity benchmarks saw significant gains during the week, driven by improving sentiment due to lower crude oil prices and reports of potential US–Iran talks. Nifty rose by 0.32% over the week, closing at 23,719 with a 0.27% increase on the last trading day. Sensex also climbed by 231 points or 0.31% to reach 75,415, marking a 0.24% weekly advance.
Investors, while cautious, showed limited confidence at higher levels, which restrained the upward momentum, according to an analyst. The IT sector notably outperformed, benefiting from attractive valuations after a recent correction. Meanwhile, realty, cement, and private banks held up well, but FMCG and consumer durables lagged due to concerns about WPI pass-through affecting margins.
Midcap indices outperformed the benchmarks, with Nifty Midcap100 rising by 1.36% and Nifty Smallcap100 gaining 0.41% during the week. The rupee received support from a slight pullback in crude prices amid efforts to ease tensions in the Middle East. However, fears of tighter monetary policy due to expected higher input inflation pushed domestic bond yields higher, as per analysts.
The US 30-year Treasury yield reached its highest level since 2007, reflecting worries about persistent inflation, high energy prices, and macroeconomic uncertainties. This raised concerns that prolonged high interest rates could continue to impact global liquidity conditions and risk assets. Market participants highlighted the 23,800–24,000 range as a strong resistance zone for Nifty 50, with 23,400–23,300 as a crucial support area.
In Bank Nifty, immediate resistance was seen around 54,200, while the 53,600–53,500 range acted as a key support zone. Foreign institutional investors (FIIs) remained net sellers, with total outflows of around Rs 7,570 crore. Investors are closely watching India’s April IIP print for insights into whether recent manufacturing weakness is temporary or a lasting concern. The RBI’s June policy decision and US core PCE data are also significant market triggers.
